...High Probability of State Support: Sharjah Islamic Bank's (SIB) IDRs reflect a high probability of support from the UAE authorities, if needed. This considers the UAE's strong capacity to support the banking system and its history of supporting its domestic banks , but also SIB's low er systemic importance due to smaller market share and franchise. SIB's VR reflects the bank's modest franchise, sizeable concentrations on both sides of the balance sheet, only satisfactory capital ratios given the concentrated balance sheet, and profitability below peers'. It also considers acceptable management and strategy, satisfactory and improving asset-quality metrics, sound funding and stable liquidity. Modest Franchise Constrains VR: SIB's VR is constrained by the bank's modest franchise, although the bank benefits from its close ties to the Sharjah government. SIB's market share is approximately 1.5% of both UAE banking system assets and deposits, w hich limits the bank's pricing pow er and competitive...
